By Christine Chen
SYDNEY, Oct 22 (Reuters) – A probe into KPMG Australia has found it mishandled whistleblower allegations of client data leaks and let cultural and governance weaknesses persist for years, but stopped short of recommending a permanent ban on the firm from federal government work.
The Department of Finance, which commissioned the review by former bureaucrat Ian Watt, said KPMG has instead agreed to not bid for new federal work until the end of February while the firm undertakes further governance reforms, extending a pause in place since June.
“The review considers that KPMG should not be treated as permanently unsuitable for Commonwealth work, but nor should confidence be restored on the strength of assurances and encouraging early signs alone,” it said.
Federal government work made up A$207.1 million, or 9.5%, of KPMG’s revenue in the 2026 financial year, the report said.
The review was launched to probe KPMG’s suitability for government work following a whistleblower’s allegations that staff misused confidential information to bid for new audit contracts.
“KPMG mishandled the whistleblower matter. Its response was misguided, fragmented, prolonged and, at critical points, lacked clear ownership,” the report released on Thursday said.
KPMG said it accepted the review’s findings and recommendations.
“The report lays bare our failings and highlights the hard work that we must do to address them,” it said.
“Confidence in KPMG’s suitability for Commonwealth...
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